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Granite Point Mortgage Trust (GPMT)
:GPMT
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Granite Point Mortgage
(NYSE:GPMT)
Rating:49Neutral
Price Target:―
Granite Point Mortgage (GPMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$142.18M
Dividend Yield6.67%
Average Volume (3M)258.09K
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-29.55%
EPS Growth42.09%
CountryUS
Employees33
SectorReal Estate
Sector Strength49
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.94
Shares Outstanding47,394,520
10 Day Avg. Volume217,423
30 Day Avg. Volume258,092
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap9.34
Enterprise Value/Revenue19.73
Enterprise Value/Gross Profit21.64
Enterprise Value/Ebitda87.42
Forecast
1Y Price Target
$3.13Price Target Upside3.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Granite Point Mortgage Business Overview & Revenue Model
Company DescriptionGranite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. As of December 31, 2021, its investment portfolio includes 105 commercial real estate loan investments. Granite Point Mortgage Trust Inc. was founded in 2015 and is headquartered in New York, New York.
How the Company Makes MoneyGranite Point Mortgage Trust Inc. generates revenue primarily through the interest income earned on its portfolio of commercial real estate loans. The company originates loans, typically senior floating rate loans, and earns interest over the life of the loan. GPMT also benefits from fees associated with loan origination and, occasionally, from the sale of loans or other real estate investments. By focusing on floating rate loans, GPMT seeks to position itself favorably in varying interest rate environments, which can impact its net interest income. The company's performance is influenced by factors such as prevailing interest rates, credit conditions in the commercial real estate market, and the overall economic environment.
Granite Point Mortgage Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. The company showed progress in reducing high-risk loans, extending credit facilities, and improving loan yields. However, it also reported significant losses, a decrease in book value, and challenges with nonaccrual loans. While there are positive developments, the financial losses and challenges weigh heavily on the overall sentiment.Q2-2025 Updates
Positive Updates
Significant Reduction in Risk Rated 5 Loans
Reduced risk rated 5 loans from 7 at year-end to 2, including resolution of the Louisville student housing loan at over $3 million above the carrying value.
Extension of Credit Facilities
Extended maturity of secured credit facility from December 2025 to December 2026, reducing financing spread by 75 basis points.
Active Loan Repayments and Reductions
Realized about $109 million of loan repayments year-to-date and reduced net loan portfolio by $115 million during the second quarter.
Share Repurchase Program
Repurchased 1.25 million shares of common stock, with 2.6 million shares remaining under existing authorization for buyback.
Improvement in Loan Portfolio Yield
Overall loan yield improved by 30 basis points to 7.1%, excluding nonaccrual loans, yielding 8.2%.
Negative Updates
GAAP Net Loss
Reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share.
Distributable Loss
Distributable loss for the quarter was $45.3 million or negative $0.94 per basic common share.
Provision for Credit Losses
Provision for credit losses of $11 million or negative $0.23 per basic common share due to less favorable macroeconomic forecast.
Decline in Book Value
Book value at June 30 was $7.99 per common share, a decline of about $0.25 from Q1.
Nonaccrual Loans
Principal balance of remaining nonaccrual loans stands at approximately $173 million with a specific CECL reserve of roughly $75 million.
Company Guidance
During the Granite Point Mortgage Trust's Second Quarter 2025 Earnings Call, the company provided guidance indicating a strategic focus on asset resolutions and loan repayments, with a plan to resume originations by late 2025 or early 2026. The call highlighted the reduction of risk-rated 5 loans from 7 to 2, with a resolution of the Louisville student housing loan yielding over $3 million above its carrying value. The company also reported $109 million in year-to-date loan repayments, contributing to a net loan portfolio reduction of $115 million during the quarter. The refinancing of three repurchase facilities was extended by approximately one year, and the secured credit facility's maturity was pushed to December 2026, with a financing spread reduction of 75 basis points. The company's distributable loss for the quarter was $45.3 million, or negative $0.94 per share, while the book value per share decreased by $0.25 to $7.99, due in part to a GAAP net loss of $17 million. Looking forward, Granite Point plans to leverage its existing origination team to capitalize on attractive investment opportunities, targeting $750 million to $1 billion in new originations to regrow its portfolio in 2026.Granite Point Mortgage Financial Statement Overview
Summary
Granite Point Mortgage is experiencing significant financial challenges, with declining revenues and widening net losses impacting profitability. Despite strong cost management reflected in a high gross margin, the overall pressure from high net losses and asset reduction is substantial. However, the elimination of total debt and strategic management of financing activities provide some positive offsets.Income Statement
Granite Point Mortgage's income statement reveals significant challenges. The company experienced a substantial decline in revenue from $266.5 million in 2023 to $185.6 million in 2024, a drop of approximately 30.4%. Net income also turned negative at -$221.5 million in 2024, down from -$63.2 million in 2023, negatively impacting net profit margins. Gross profit margin remained strong at approximately 89.5% in 2024, indicating efficient cost management despite revenue drops, but overall profitability remains under pressure due to high net losses.45
Neutral
Balance Sheet
The balance sheet shows a decrease in total assets from $2.85 billion in 2023 to $2.12 billion in 2024, alongside a decline in stockholders' equity from $858.9 million to $619.1 million. The debt-to-equity ratio improved as total debt was cleared in 2024. However, the equity ratio decreased from 30.2% in 2023 to 29.3% in 2024, reflecting reduced financial stability. The company's ability to improve its debt position is a positive indicator, but overall equity and asset reduction signal caution.50
Neutral
Cash Flow
Granite Point Mortgage demonstrated a significant improvement in cash flow metrics. Operating cash flow remains positive at $8.76 million in 2024, though significantly reduced from $52.1 million in 2023. Free cash flow followed a similar trend. Despite this decline, the company reduced its financing outflows substantially, which may support future liquidity. While cash flows were pressured, strategic management of financing activities provided some relief.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.31M | 39.86M | 266.49M | 78.26M | 112.73M | 72.19M |
| Gross Profit | 61.34M | 39.86M | 261.18M | 47.28M | 82.64M | 43.16M |
| EBITDA | 15.19M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | -90.45M | -207.05M | -63.20M | -40.83M | 68.35M | -40.44M |
Balance Sheet | ||||||
| Total Assets | 1.92B | 2.12B | 2.85B | 3.45B | 3.99B | 4.22B |
| Cash, Cash Equivalents and Short-Term Investments | 85.10M | 87.79M | 188.37M | 3.48B | 191.93M | 261.42M |
| Total Debt | 0.00 | 875.09M | 1.95B | 1.41B | 2.26B | 1.53B |
| Total Liabilities | 1.33B | 1.50B | 1.99B | 2.47B | 2.97B | 3.28B |
| Stockholders Equity | 584.20M | 619.09M | 858.90M | 983.54M | 1.01B | 933.85M |
Cash Flow | ||||||
| Free Cash Flow | -5.10M | 5.99M | 52.10M | 58.90M | 60.30M | 20.25M |
| Operating Cash Flow | -302.00K | 8.76M | 52.10M | 58.90M | 60.30M | 20.25M |
| Investing Cash Flow | 548.11M | 435.24M | 561.43M | 408.63M | 139.77M | 341.62M |
| Financing Cash Flow | -550.70M | -528.74M | -554.47M | -531.66M | -324.97M | -192.44M |
Granite Point Mortgage Technical Analysis
Positive
3.03
Price Trends
2.68
Positive
2.46
Positive
2.61
Positive
Market Momentum
0.09
Negative
65.34
Neutral
91.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPMT, the sentiment is Positive. The current price of 3.03 is above the 20-day moving average (MA) of 2.85, above the 50-day MA of 2.68, and above the 200-day MA of 2.61, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 91.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GPMT.
Granite Point Mortgage Risk Analysis
Granite Point Mortgage disclosed 72 risk factors in its most recent earnings report. Granite Point Mortgage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Granite Point Mortgage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $61.08M | 11.12 | 12.68% | 8.55% | -7.13% | -3.24% | |
63 Neutral | $7.03B | 13.25 | -0.34% | 6.93% | 4.01% | -25.47% | |
60 Neutral | $121.95M | 12.83 | 6.01% | 16.67% | -24.12% | -47.91% | |
59 Neutral | $156.55M | 66.03 | 5.05% | ― | -16.01% | -98.23% | |
54 Neutral | $105.97M | 43.78 | -2.56% | 20.13% | -2.02% | -20.61% | |
49 Neutral | $142.18M | ― | -14.12% | 6.67% | -29.55% | 42.09% | |
47 Neutral | $60.60M | ― | -18.82% | 17.56% | -61.14% | -1562.60% |
* Real Estate Sector Average
Performance Comparison
GPMT
Granite Point Mortgage
3.00
0.53
21.46%
LOAN
Manhattan Bridge Capital
5.36
0.55
11.43%
ACR
ACRES Commercial Realty
21.01
5.56
35.99%
LFT
Lument Finance Trust
2.33
0.19
8.88%
CHMI
Cherry Hill Mortgage
2.92
0.03
1.04%
SACH
Sachem Capital
1.28
-1.06
-45.30%
Granite Point Mortgage Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Granite Point Mortgage Appoints New Board Members
Positive
Jan 15, 2025
Granite Point Mortgage Trust Inc. announced the appointment of Patrick Halter and Lazar Nikolic to its Board of Directors, effective January 15, 2025. Mr. Halter joins the Compensation Committee and Mr. Nikolic the Nominating and Corporate Governance Committee. This move is part of Granite Point’s strategy to enhance board expertise and navigate current market conditions, aiming to drive growth and shareholder value.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.